Freddie Mac pilots automated payment platform

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The FHA 203k loan program provides home buyers the opportunity to buy and fix up a property, without exhausting their personal savings.

Freddie Mac has launched an initiative aimed at helping low- and moderate-income earners to make loan payments on time, avoid delinquency, and improve savings opportunities.

Freddie, in collaboration with fintech company EarnUp, is rolling out a platform that allows consumers manage their loans. The company’s platform allows users to automate loan payments. It also has a feature that sets aside a few dollars for loans when consumers can afford it, helping users pay on time and get out of debt faster.

"The increasing rate of consumer debt and the low homeownership rate lead us to believe that average Americans could use help managing their debts," said Danny Gardner, vice president of affordable lending and access to credit in Freddie Mac's single-family business. "We believe EarnUp's online platform is an innovative and convenient approach that may help the next generation of potential homebuyers meet their future goals."

EarnUp provides users with personalized recommendations on how to pay down their debts. The platform also automatically withdraws money from user accounts on their paydays, breaking down expenses into bite-sized payments.

"Our experience shows that people are more likely to stay current on their loan payments if we make it quick and easy for them to do so," EarnUp CEO and co-founder Matthew Cooper said. "EarnUp is proud to be working with Freddie Mac to provide technology solutions that can help consumers improve not only their credit scores but also their overall financial health."

Freddie Mac rolled out the pilot through nonprofit financial counseling organizations HomeFree-USA, which serves Maryland; Washington, D.C.; and Northern Virginia; GreenPath Financial Wellness, which serves the Detroit metropolitan area; and InCharge Debt Solutions, which serves all other areas in the US. The program allows a limited number of users to use the platform for free for 12 months.